<PAGE> 1
PACIFICA
VARIABLE ANNUITY
PACIFICA EMERGING GROWTH PORTFOLIO
PACIFICA EQUITY VALUE PORTFOLIO
PACIFICA BALANCED PORTFOLIO
PACIFICA INTERMEDIATE BOND PORTFOLIO
PACIFICA MONEY MARKET PORTFOLIO
SEMI-ANNUAL REPORT
MARCH 31, 1996
<PAGE> 2
PACIFICA
THE VARIABLE ANNUITY EMERGING GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MARCH 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 1A)
- ------ --------- ---------
<S> <C> <C> <C> <C>
COMMON STOCKS - 91.43%
CAPITAL GOODS - 8.52%
7,000 AFC Cable Systems Inc ** $87,938 526,600
4,000 Baldor Electric 82,030 80,500
3,800 Cognex Corp ** 97,300 97,850
2,200 Kent Electronics Corp ** 73,270 77,825
3,400 Peak Technologies, Inc ** 94,950 60,350
2,600 Teleflex Inc 109,938 117,325
--------- ---------
545,426 526,600
--------- ---------
CONSUMER CYCLICALS - 18.49%
4,000 Brush Industries Class A 82,053 101,000
2,500 Circuit City Stores Inc 74,025 74,688
3,120 Corporate Express Inc ** 75,156 102,570
4,000 Custom Chrome Inc ** 96,750 96,000
3,200 Day Runner Inc ** 83,300 83,200
2,000 Kaydon Corp 60,808 70,000
2,200 Lone Star Steakhouse ** 85,450 83,600
3,000 The Men's Wearhouse Inc ** 77,125 94,500
2,600 Rainforest Cafe Inc ** 75,850 81,250
2,200 Regal Cinemas Inc ** 64,813 80,850
3,000 TCA Cable TV Inc 86,200 86,625
3,500 Tractor Supply Company ** 72,812 92,750
5,500 Westcott Communications ** 80,875 96,250
--------- ---------
1,015,217 1,143,283
--------- ---------
CONSUMER STAPLES - 7.88%
1,100 Cataline Marketing Corp ** 70,791 85,937
3,000 Greenwich Air Services Corp ** 68,875 126,000
5,200 NFO Research Inc ** 97,450 126,100
2,000 On Assignment Inc ** 60,066 73,750
1,300 Paychex, Inc 67,600 75,725
--------- ---------
364,782 487,512
--------- ---------
ENERGY - 2.54%
2,400 Apache Corp 67,164 64,500
6,500 Nabor Industries ** 72,015 92,625
--------- ---------
139,179 157,125
--------- ---------
FINANCE - 3.98%
1,800 Green Tree Financial Corp 56,133 61,875
5,000 Hibernia Corp Class A 53,425 53,125
1,000 Market Corp ** 77,750 83,500
1,200 Old Kent financial Corp 48,900 47,700
--------- ---------
236,208 246,200
--------- ---------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 3
PACIFICA
THE VARIABLE ANNUITY EMERGING GROWTH PORTFOLIO
*PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) - MARCH 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 1A)
- ------ ---- ---------
<S> <C> <C> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE - 13.54%
2,500 American Medical Response** $ 75,963 $ 88,750
1,500 Amgen Inc** 88,062 87,000
1,500 Elan Corp PLC - ADR** 77,565 96,375
2,400 Gulf South Medical Supply Inc** 70,300 90,600
1,300 Nellcor Puritan - Bennett** 74,825 83,525
3,500 Patterson Dental** 92,400 105,875
4,300 Respironics** 83,150 90,300
2,000 Stryker Corp 103,125 98,250
4,000 Vital Signs Inc 105,000 96,500
---------- ----------
770,390 837,175
---------- ----------
INTERMEDIATE GOODS - 1.38%
1,500 Sigma - Aldrich 87,000 85,500
---------- ----------
TECHNOLOGY - 30.72%
1,700 Adaptec Inc** 76,975 82,025
2,000 Aspect Telecommunications** 71,700 91,500
2,000 Aspen Technology Inc** 69,000 84,500
2,000 Avnet Inc 89,927 96,500
2,600 Bisys Group** 78,400 84,825
3,500 Concord EFS Inc** 79,750 91,000
3,200 Digi International Inc** 65,175 87,200
2,300 Dionex Corp** 70,500 80,500
2,000 Dovatron International Inc** 65,900 60,500
5,000 EIS International Inc** 81,025 80,625
3,300 Gilat Satellite Networks** 87,800 79,200
2,400 Glenayre Technologies** 95,625 91,800
2,700 Global Industrial Technology** 66,849 64,800
2,300 Input/Output** 54,763 71,300
2,500 Octel Communications Corp** 87,688 120,000
4,200 Perceptron Inc** 93,150 107,100
3,000 Project Software & Development Inc** 93,000 114,750
4,200 Rainbow Technologies, Inc** 87,400 74,025
1,400 Seagate Technologies Inc** 74,304 76,650
4,000 Trimble Navigation** 78,000 90,500
2,200 Verifone** 64,907 92,400
3,000 Zebra Technologies Corp class A 98,437 78,000
---------- ----------
1,730,275 1,899,700
---------- ----------
TRANSPORTATION - 2.89%
3,500 Expeditors International of
Washington Inc. 90,500 91,875
3,500 Heartland Express, Inc** 75,522 86,625
---------- ----------
166,022 178,500
---------- ----------
UTILITIES - 1.49%
2,000 Worldcom Inc** 75,850 92,000
---------- ----------
TOTAL COMMON STOCKS - 91.43% 5,130,349 5,653,595
</TABLE>
See accompanying notes to financial statements.
<PAGE> 4
PACIFICA
THE VARIABLE ANNUITY EMERGING GROWTH PORTFOLIO
* PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) - MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 1A)
------------ ------------- ---------------
<S> <C> <C> <C> <C>
$425,000 U.S. TREASURY OBLIGATIONS 6.87%
U.S. Treasury Bill 4.84%, 4/4/96 $424,829 $424,829
------------- ---------------
TOTAL INVESTMENTS - 98.30% $5,555,178 6,078,424
=============
OTHER ASSETS LESS LIABILITIES - 1.70% 105,243
------ ---------------
NET ASSETS - 100.00% $6,183,667
===============
</TABLE>
* The cost of securities is substantially the same for Federal income tax
purposes.
** Non-income producing security.
See accompanying notes to financial statements.
<PAGE> 5
PACIFICA
THE VARIABLE ANNUITY EQUITY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED)- MARCH 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 1A)
-------- --------
<S> <C> <C> <C>
COMMON STOCKS - 95.19%
BASIC INDUSTRY - 2.63%
4,000 International Paper Co. $155,740 $157,500
-------- --------
CHEMICALS - 7.98%
11,000 Crompton & Knowles 155,567 160,875
4,000 Union Carbide Corp. 153,240 198,500
5,000 Wellman Inc. 120,529 117,500
-------- --------
429,336 476,875
-------- --------
COMPUTERS/ELECTRONICS - 6.79%
10,000 Excel Industries Inc. 139,350 113,750
1,500 International Business Machines Corp. 135,840 166,688
4,000 Micron Technology Inc. 159,528 125,500
-------- --------
434,718 405,938
-------- --------
CONSUMER SPENDING - 14.54%
6,000 Ethan Allen Interiors Inc. * * 127,746 157,500
5,000 Ford Motor Company 152,175 171,875
4,000 I B P Inc 96,740 102,500
10,000 Price/ Costco Inc. * * 155,000 187,500
3,500 Quaker Oats 118,818 116,812
3,500 Universal Foods Corp. 140,648 133,437
-------- --------
791,127 869,624
-------- --------
CONSUMER STAPLES - 6.92%
15,000 Ameridata Technologies Inc. * * 141,525 170,625
8,000 Banctec Inc. * * 136,480 138,000
1,200 Philip Morris Cos., Inc. 110,472 105,300
-------- --------
388,477 413,925
-------- --------
ENERGY - 10.80%
6,000 Cyprus Amax Minerals Co. 161,610 169,500
2,000 Exxon Corp. 161,120 163,250
1,000 Royal Dutch Petroleum Co. ADR. 141,435 141,250
2,000 Texaco, Inc. 156,557 172,000
-------- --------
620,722 646,000
-------- --------
FINANCE - 8.84%
1,200 Alex Brown 62,398 62,250
2,000 BankAmerica Corp. 133,370 155,000
2,500 First Union Corp. 136,963 151,250
2,000 Nationsbank Corp. 139,370 160,250
-------- --------
472,101 528,750
-------- --------
HEALTH CARE - 7.02%
1,200 American Home Products 119,958 130,050
3,000 Baxter International Inc. 126,180 135,750
1,800 Bristol - Myers Squibb Co. 152,208 154,125
-------- --------
398,346 419,925
-------- --------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE> 6
PACIFICA
THE VARIABLE ANNUITY EQUITY VALUE PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) - MARCH 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 1A)
-------- --------
<S> <C> <C> <C>
COMMON STOCKS (CONTINUED)
MANUFACTURING - 23.09%
2,000 General Electric Co. $ 148,370 $ 155,750
14,000 Griffon Corp * * 135,408 131,250
5,000 Harnishfeger Industries 165,425 193,750
4,000 Lukens, Inc. 120,133 99,500
8,000 Southdown Inc. 157,472 189,000
2,500 Texas Industries Inc. 134,498 159,063
7,000 Varlen Corp. 152,250 159,250
2,800 Willamette Industries Inc. 159,250 167,300
1,000 Xerox Corporation 130,300 125,500
---------- ----------
1,303,106 1,380,363
---------- ----------
UTILITIES - 6.57%
4000 Cinergy Corp. 124,740 120,000
6,000 Southern Co. 148,860 143,250
4,000 US West, Inc. 140,240 129,500
---------- ----------
413,840 392,750
---------- ----------
Total Investments - 95.19% $5,407,513 5,691,650
==========
Other Assets less Liabilities- 4.81% 287,792
----------
Net Assets- 100.00% $5,979,442
==========
</TABLE>
* The cost of securities is substantially the same for Federal income tax
purposes.
** Non- income producing security.
See accompanying notes to financial statements.
<PAGE> 7
PACIFICA
THE VARIABLE ANNUITY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MARCH 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 1A)
------------ -------- --------
<S> <C> <C> <C>
COMMON STOCKS - 66.84%
BASIC INDUSTRY - 1.07%
1,500 International Paper Co. $ 58,403 $ 59,062
--------- ---------
CHEMICALS - 5.60%
8,000 Crompton & Knowles 113,134 117,000
2,000 Union Carbide Corp. 76,620 99,250
4,000 Wellman Inc. 96,423 94,000
--------- ---------
286,177 310,250
--------- ---------
COMPUTERS/ELECTRONICS - 5.35%
8,000 Excel Industries Inc. 111,480 91,000
1,000 International Business Machines Corp. 90,560 111,125
3,000 Micron Technology Inc. 119,646 94,125
--------- ---------
321,686 296,250
--------- ---------
CONSUMER SPENDING - 9.85%
4,000 Ethan Allen Interiors Inc. * * 85,164 105,000
4,000 Ford Motor Company 121,740 137,500
8,000 Price/ Costco Inc. * * 124,000 150,000
2,300 Quaker Oats 78,081 76,763
2,000 Universal Foods Corp. 80,620 76,250
--------- ---------
489,605 545,513
--------- ---------
CONSUMER STAPLES - 5.60%
12,000 Ameridata Technologies Inc. * * 113,220 136,500
6,000 Banctec Inc. * * 102,360 103,500
800 Philip Morris Cos., Inc. 73,648 70,200
--------- ---------
289,228 310,200
--------- ---------
ENERGY - 7.85%
4,000 Cyprus Amax Minerals Co. 107,740 113,000
1,500 Exxon Corp. 120,840 122,438
800 Royal Dutch Petroleum Co ADR. 113,148 113,000
1,000 Texaco, Inc. 77,810 86,000
--------- ---------
419,538 434,438
--------- ---------
FINANCE - 5.93%
1,800 BankAmerica Corp. 120,033 139,500
1,000 First Union Corp. 54,685 60,500
1,600 Nationsbank Corp. 111,496 128,200
--------- ---------
286,214 328,200
--------- ---------
HEALTH CARE - 5.06%
800 American Home Products 79,972 86,700
2,000 Baxter International Inc. 84,120 90,500
1,200 Bristol - Myers Squibb Co. 101,472 102,750
--------- ---------
265,564 279,950
--------- ---------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 8
PACIFICA
THE VARIABLE ANNUITY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) - MARCH 31, 1996
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 1A)
------------ -------- --------
<S> <C> <C> <C>
COMMON STOCKS (CONTINUED)
MANUFACTURING - 16.32%
1,500 General Electric Co. $ 111,278 $ 116,813
10,000 Griffon Corp. * * 96,720 93,750
3,000 Harnishfeger Industries 99,180 116,250
3,000 Luken, Inc. 90,100 74,625
6,000 Southdown Inc. 118,104 141,750
2,000 Texas Industries Inc. 107,598 127,250
5,000 Varlen Corp. 108,750 113,750
2,000 Willamette Industries Inc. 113,750 119,500
---------- ----------
845,480 903,688
---------- ----------
UTILITIES - 4.23%
3000 Cinergy Corp. 93,555 90,000
4,000 Southern Co. 98,740 95,500
1,500 US West , Inc. 52,590 48,563
---------- ----------
244,885 234,063
---------- ----------
TOTAL COMMON STOCKS - 66.84% 3,506,780 3,701,614
---------- ----------
PRINCIPAL
AMOUNT
- --------------
U. S. Treasury Obligations- 29.25%
U. S. Treasury Notes-
$655,000 7.875 % ,08/15/2001 729,247 705,762
670,000 7.500 % ,11/15/2001 736,657 711,246
210,000 5.750 % ,08/15/2003 206,048 202,715
---------- ----------
Total U. S. Treasury Obligations 1,671,952 1,619,723
---------- ----------
TOTAL INVESTMENTS- 96.09% $5,178,732 5,321,337
OTHER ASSETS LESS LIABILITIES- 3.91% ========== 216,416
NET ASSETS- 100.00% $5,537,753
==========
</TABLE>
* The cost of securities is substantially the same for Federal income tax
purposes.
** Non- income producing security.
See accompanying notes to financial statements.
<PAGE> 9
PACIFICA
THE VARIABLE ANNUITY INTERMEDIATE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MARCH 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 1A)
- -------------- -------- --------
<S> <C> <C> <C>
U. S TREASURY OBLIGATIONS - 51.33%
U. S. TREASURY NOTES
$350,000 6.000%, 08/31/1997 $ 353,762 $ 351,531
350,000 5.125%, 04/30/1998 349,482 345,625
750,000 7.125%, 09/30/1999 793,137 775,781
500,000 5.625%, 11/30/2000 505,008 490,156
300,000 7.500%, 11/15/2001 325,899 318,469
325,000 5.750%, 08/15/2003 329,208 313,726
---------- ----------
TOTAL U. S TREASURY OBLIGATIONS 2,656,496 2,595,288
---------- ----------
U. S. GOVERNMENT AGENCY OBLIGATIONS- 10.05%
500,000 Federal National Mortgage Association
Medium Term Note 6.850%,08/22/2005 534,957 508,256
---------- ----------
COLLATERALIZED MORTGAGE OBLIGATIONS- 9.92%
500,000 Banc One Auto Grantor Trust 6.10%, 10/15/2002 499,766 501,735
---------- ----------
CORPORATE NOTES/ BONDS - 19.54%
500,000 Morgan Stanley Group 6.500%, 03/30/2001 500,597 497,446
500,000 Smith Barney Holdings 5.500%, 01/15/1999 497,202 490,569
---------- ----------
TOTAL CORPORATE NOTES/ BONDS 997,799 988,015
---------- ----------
SHORT-TERM HOLDINGS - 6.91%
350,000 FMC Discount Note 5.35%, 4/11/96 349,480 349,480
---------- ----------
TOTAL INVESTMENTS 97.75% $5,038,498 4,942,774
==========
OTHER ASSETS LESS LIABILITIES - 2.25% 113,551
----------
NET ASSETS- 100.00% $5,056,325
==========
</TABLE>
* The cost of securities is substantially the same for Federal income tax
purposes.
See accompanying notes to financial statements.
<PAGE> 10
PACIFICA
THE VARIABLE ANNUITY MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MARCH 31, 1996
<TABLE>
<CAPTION>
YIELD TO
PRINCIPAL MATURITY
AMOUNT CREDIT ON DATE OF VALUE
RATINGS PURCHASE (NOTE 1A)
- ----------------- --------- ----------- ----------
COMMERCIAL PAPER- 33.35%
-----------------
<S> <C> <C> <C>
$230,000 Budget Funding Corp. 5.330%,4/19/96 A1/P1 5.40% $ 229,387
230,000 Coca Cola Company 5.300%, 4/15/96 A1+/P1 5.32% 229,526
230,000 Ford Motor Credit Corp..5.180%, 4/10/96 A1/P1 5.23% 229,702
224,000 G E Capital Corp. 5.170%, 9/06/96 A1+/P1 5.31% 218,917
204,000 Merrill Lynch & Co.5.120%,6/28/96 A1/P1 5.21% 201,447
230,000 PHH Corp 5.320%, 4/12/96 A1/P1 5.34% 229,626
125,000 Transamerica Finance Corp.5.240%,4/12/96 A1/P1 5.27% 124,800
230,000 Walt Disney Company 5.220%, 6/17/96 A1/P1 5.29% 227,432
----------
TOTAL COMMERCIAL PAPER 1,690,837
----------
U. S. GOVERNMENT AGENCY OBLIGATIONS- 66.64%
1,485,000 Federal Farm Credit Bank 5.160%,4/04/96 5.25% 1,484,361
1,895,000 Federal Home Loan Mortgage 5.28%,4/03/96 5.38% 1,894,444
----------
TOTAL U. S. GOVERNMENT AGENCY OBLIGATIONS 3,378,806
----------
TOTAL INVESTMENTS 5,069,643
OTHER ASSETS LESS LIABILITIES - 0.01% 437
----------
NET ASSETS- 100.00% $5,070,080
==========
</TABLE>
* The cost of securities is substantially the same for Federal income tax
purposes.
See accompanying notes to financial statements.
<PAGE> 11
PACIFIC VARIABLE ANNUITY
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
MARCH 31, 1996
<TABLE>
<CAPTION>
EMERGING INTERMEDIATE MONEY
GROWTH EQUITY VALUE BALANCED BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------ --------- ------------ ----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at value (note 1A)
(identified cost $5,555,178, $5,407,513, $5,178,732 $6,078,424 $5,691,650 $5,321,337 $4,942,774 $5,069,643
$5,038,498 AND $5,069,643, respectively)
Cash 97,632 293,833 196,279 53,560 7,978
Receivables:
Investment securities sold 99,861 - - - -
Dividends and interest 1,256 4,465 30,106 68,118 -
Other assets 3,080 2,991 2,991 2,991 2,991
---------- ---------- ---------- ---------- ----------
Total assets 6,280,253 5,992,939 5,560,713 5,067,443 5,080,612
---------- ---------- ---------- ---------- ----------
LIABILITIES:
Payable for securities purchased 82,763 - - - -
Administrative services fee payable (note 2) 872 658 636 - -
Custodian fee payable (note 2) 400 395 380 184 -
Fund accounting fee payable (note 2) 7,500 7,500 7,500 7,500 7,500
Accrued expenses 5,251 4,944 4,444 3,434 3,032
---------- ---------- ---------- ---------- ----------
Total liabilities 96,586 13,497 12,960 11,118 10,532
---------- ---------- ---------- ---------- ----------
NET ASSETS:
Par value of shares of beneficial interest outstanding
($.001 per share); unlimited number of shares
authorized $571 $567 $539 $517 $5,070
Additional paid in capital 5,732,761 5,678,352 5,385,861 5,164,890 5,065,010
Accumulated net realized gain (loss) on investment
transactions (72,963) 16,254 8,574 (13,358) -
Accumulated undistributed net investment income 52 132 174 - -
Net unrealized appreciation (depreciation) on
investments 523,246 284,137 142,605 (95,724) -
---------- ---------- ---------- ---------- ----------
Net assets applicable to outstanding shares $6,183,667 $5,979,442 $5,537,753 $5,056,325 $5,070,080
========== ========== ========== ========== ==========
Shares of beneficial interest outstanding 571,419 587,486 538,604 516,768 5,070,080
========== ========== ========== ========== ==========
Net asset value per share outstanding $10.82 $10.54 $10.28 $9.78 $1.00
========== ========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 12
PACIFICA VARIABLE ANNUITY
Statement of Operations (unaudited)
For the period January 2, 1996 (commencement of operations)
to March 31, 1996.
<TABLE>
<CAPTION>
Emerging Intermediate Money
Growth Equity Value Balanced Bond Market
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ------------ --------- ------------ ---------
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Income:
Dividends: $2,444 $30,062 $20,517 -- --
Interest: 16,587 21 19,582 $64,968 $66,178
------ ------- ------- ------- -------
Total Income 19,031 30,083 40,099 64,968 66,178
------ ------- ------- ------- -------
Expenses:
Advisory (note 2) 10,077 9,873 9,537 7,928 7,332
Administrative
services
(note 2) 2,018 1,974 1,908 1,830 1,833
Custodian(note 2) 400 395 308 365 365
Fund accounting
(note 2) 7,500 7,500 7,500 7,500 7,500
Professional fees 1,000 1,000 1,000 825 425
Report to
shareholders 225 225 225 225 225
Trustees' fees
and expenses 4,508 4,508 4,508 4,508 4,508
Miscellaneous 1,818 1,511 1,011 175 174
------ ------ ------ ------ ------
Total expenses
before waivers 27,544 26,986 26,089 23,356 22,362
Expenses waived
by Advisor and
Administrator
(note 2) (11,421) (11,189) (10,809) (9,939) (9,530)
-------- -------- -------- ------- -------
Total expenses 16,123 15,797 15,260 13,417 12,832
-------- -------- -------- ------- -------
Net investment
income 2,908 14,286 24,839 51,551 53,346
------- -------- -------- -------- -------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain
(loss) on invest-
ment transactions (72,963) 16,254 8,574 (13,358) --
Net change in
unrealized appre-
ciation (depre-
ciation) on invest-
ments 523,246 284,137 142,605 (95,724) --
------- ------- ------- -------- --------
Net realized and
unrealized gain
(loss) on
investments 450,283 300,391 151,179 (109,082) 53,346
------- ------- ------- --------- -------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $453,191 $314,677 $176,018 ($57,531) $53,346
-------- -------- -------- --------- -------
-------- -------- -------- --------- -------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 13
PACIFICA VARIABLE ANNUITY
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD ENDED MARCH 31, 1996*
<TABLE>
<CAPTION>
EMERGING INTERMEDIATE MONEY
GROWTH EQUITY VALUE BALANCED BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income $2,908 $14,286 $24,839 $51,551 $53,346
Net realized gain (loss) on
investment transactions (72,963) 16,254 8,574 (13,358) -
Change in unrealized appreciation
(depreciation) on investments 523,246 284,137 142,605 (95,724) -
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
assets resulting from operations 453,191 314,677 176,018 (57,531) 53,346
---------- ---------- ---------- ---------- ----------
Distributions from net investment
income (2,856) (14,154) (24,665) (51,551) (53,346)
---------- ---------- ---------- ---------- ----------
Capital share Transactions:
Net proceeds from sale of shares 5,731,682 5,665,866 5,362,358 5,113,834 5,017,358
Net asset value of shares issued
to shareholders in reinvestment
of dividends 2,866 14,154 24,665 51,551 53,346
---------- ---------- ---------- ---------- ----------
5,734,538 5,680,020 5,387,023 5,165,485 5,070,704
Cost of shares redeemed (1,206) (1,101) (623) (78) (624)
---------- ---------- ---------- ---------- ----------
Increase in net assets derived
from capital share transactions 5,733,332 5,678,919 5,386,400 5,165,407 5,070,080
---------- ---------- ---------- ---------- ----------
Net increase in net assets 6,183,667 5,979,442 5,537,753 5,056,325 5,070,080
NET ASSETS:
Beginning of period 0 0 0 0 0
---------- ---------- ---------- ---------- ----------
End of period (including
undistributed net investment
income of $52, $132, $174,
$0 and $0, respectively) $6,183,667 $5,979,442 $5,537,753 $5,056,325 $5,070,080
========== ========== ========== ========== ==========
</TABLE>
- -------------------
* Fund commenced operation on January 2, 1996.
See accompanying notes to financial statements.
<PAGE> 14
Pacifica Variable Annuity
Notes to Financial Statements (unaudited) - March 31, 1996
1. The Emerging Growth Portfolio, Equity Value Portfolio, Balanced Portfolio,
Intermediate Bond Portfolio and Money Market Portfolio, (together, the
"Portfolios") are separately managed portfolios of Pacifica Variable Trust (the
"Trust"), an open-end management investment company registered under the
Investment Company Act of 1940, shares of which are currently offered only to
separate accounts ("Separate Accounts") funding variable annuity contracts
issued by Anchor National Life Insurance Company (the "Participating Insurance
Company"). Shares of the Trust are not offered to the general public. The Trust
was organized as a Delaware business trust on August 26, 1994. The following is
a summary of significant accounting policies consistently followed by the
Portfolios in the preparation of their financial statements:
A. The Portfolios value investments at the last sales price on the
securities exchange on which such securities are primarily traded.
Over-the-counter securities or exchange traded securities for which there
are no transactions, are valued at the current bid price. Bonds and other
fixed-income securities may be valued on the basis of prices provided by a
pricing service approved by the Board of Trustees. In the absence of market
quotations, investments are valued at fair value as determined in good
faith by, or at the direction of, the Trustees. Short-term securities which
mature in 60 days or less are valued at amortized cost, if their term to
maturity at purchase was 60 days or less, or by amortizing their value on
the 61st day prior to maturity, if their original term to maturity at
purchase exceeded 60 days.
B. It is the Portfolios' policy to comply with the requirements of the
Internal Revenue Code (the "Code") applicable to regulated investment
companies and to distribute substantially all of their "investment company
taxable income," as defined in the Code, and net capital gains, if any, to
their shareholders. Therefore, no Federal income tax provision is required.
In addition, by distributing during each calendar year substantially all of
their net investment income, capital gains and certain other amounts, if
any, the Portfolios intend not to be subject to a Federal excise tax.
C. Each Portfolio expects to distribute substantially all of its net
investment income and capital gains each year. Dividends for the Money
Market Portfolio are declared daily and paid monthly. Dividends for the
Intermediate Bond Portfolio are declared and paid monthly. Dividends for
the Emerging Growth Portfolio, Equity Value Portfolio and Balanced
Portfolios are declared and paid quarterly. Net capital gains, if any, will
be distributed at least annually. All dividends and capital gain
distributions of a Portfolio will be automatically reinvested in additional
shares of the same Portfolio at the net asset value of such shares on the
payment date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined in accordance with
Federal income tax regulations which may differ from net investment income
and net realized capital gains as determined by generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital
accounts based on their Federal tax-basis treatment; temporary differences
do not require reclassification. Dividends and distributions which exceed
net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in
excess of net investment income or distributions in excess of net realized
capital gains. To the extent dividends and distributions exceed net
investment income and net realized capital gains for tax purposes, they are
reported as distributions of paid-in capital.
D. Investment transactions are recorded on the trade date. Identified
cost of investments sold is used to calculate realized gains and losses for
both financial statement and Federal income tax purposes. Interest income,
including the amortization of discount or premium, is recorded as earned.
E. Expenses directly attributable to a Portfolio are charged to that
Portfolio; other expenses are allocated proportionately among each
Portfolio within the Trust in relation to the net assets of each Portfolio
or on another reasonable basis.
2. First Interstate Capital Management ("FICM") is the investment advisor to the
Portfolios. FICM manages the investment and reinvestment of the assets of the
Portfolios and continually reviews, supervises and administers the Portfolios'
investments. FICM is responsible for placing orders for the purchase and sale of
the Portfolios' investments directly with brokers or dealers selected by it in
its discretion and for furnishing to
<PAGE> 15
Pacifica Variable Annuity
Notes to Financial Statements (unaudited)(continued) - March 31, 1996
the Board of Trustees, which has overall responsibility for the business affairs
of the Trust, periodic reports on the performance of the Portfolios. As
compensation for their advisory services, the Emerging Growth Portfolio, Equity
Value Portfolio, Balanced Portfolio, Intermediate Bond Portfolio and Money
Market Portfolio each pay FICM an annual fee payable monthly equal to .75%,
.75%, .75%, .65% and .60%, respectively of each Portfolios average daily net
assets.
In addition, First Interstate Bank of California ("FICAL"), an
affiliate of FICM, serves as Custodian for the Portfolios, for which FICAL
receives a fee based upon net assets and certain transaction charges. For the
period ended March 31, 1996, the Portfolios incurred the following amounts due
to FICM and FICAL:
<TABLE>
<CAPTION>
Emerging Equity Balanced Intermediate Money Market
Growth Portfolio Value Portfolio Portfolio Bond Portfolio Portfolio
---------------- --------------- --------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Advisory fees $10,077 $9,873 $9,537 $7,928 $7,332
Custodial fees 400 395 380 365 365
------- ------- ------ ------ ------
$10,477 $10,268 $9,917 $8,293 $7,697
======= ======= ====== ====== ======
</TABLE>
For the period ended March 31, 1996, FICM voluntarily waived advisory
fees of $10,077, $9,873, $9,537, $7,928 and $7,332 for Emerging Growth
Portfolio, Equity Value Portfolio, Balanced Portfolio, Intermediate Bond
Portfolio and Money Market Portfolio, respectively. FICM voluntarily waived
custodial fees of $181, and $365 for the Intermediate Bond Portfolio and Money
Market Portfolio, respectively.
On April 1, 1996, First Interstate Bancorp was merged with and into
Wells Fargo & Company ("Wells Fargo") and FICM and FICAL became indirect
wholly-owned subsidiaries of Wells Fargo. In connection with this merger, FICM
has changed its name to Wells Fargo Investment Management, Inc. ("WFIM").
Furman Selz LLC ("Furman Selz") provides administrative services for
the operation of the Portfolios, furnishes office space and facilities required
for conducting the business of the Portfolios and pays the compensation of the
Trust's officers and trustees affiliated with Furman Selz. As compensation for
their administrative services, each Portfolio pays Furman Selz an annual fee
payable monthly equal to .15% of the average daily net assets of each Portfolio.
The Portfolios also retain Furman Selz to provide personnel and
facilities to perform shareholder servicing, transfer agency related services
and Portfolio accounting. For the period ended March 31, 1996 Furman Selz earned
the following fees from the Portfolios:
<TABLE>
<CAPTION>
Emerging Growth Equity Value Balanced Intermediate Bond Money Market
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------- ------------ --------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
Administrative Fees $ 2,016 $1,974 $1,908 $1,830 $1,833
Shareholder servicing &
Portfolio accounting fees 7,500 7,500 7,500 7,500 7,500
------- ------ ------ ------ ------
$ 9,516 $9,474 $9,408 $9,330 $9,333
======= ====== ====== ====== ======
</TABLE>
Certain of the states in which the shares of the Portfolios are
qualified for sale impose limitations on the expenses of the Portfolios. If, in
any fiscal year, the total expenses of a Portfolio (excluding taxes, interest,
distribution expenses, brokerage commissions, certain portfolio transaction
expenses, other expenditures which are capitalized in accordance with generally
accepted accounting principles and extraordinary expenses, but including the
advisory and administrative services fees) exceed the expense limitations
applicable to that Portfolio imposed by the securities regulations of any state,
FICM and Furman Selz will pay
<PAGE> 16
Pacifica Variable Annuity
Notes to Financial Statements (unaudited)(continued) - March 31, 1996
or reimburse the Portfolio to the extent of advisory and administrative fees.
For the period ended March 31, 1996, the Portfolios did not exceed such
limitation.
For the period ended March 31, 1996, Furman Selz voluntarily waived
administrative fees of $1,344, $1,316, $1,272, $1,830, and $1,833 for Emerging
Growth Portfolio, Equity Value Portfolio, Balanced Portfolio, Intermediate Bond
Portfolio and Money Market Portfolio, respectively.
3. The Portfolios may enter into repurchase agreements with government
securities dealers recognized by the Federal Reserve Board, with member banks of
the Federal Reserve System or with other brokers or dealers that meet the credit
guidelines established by the Trustees. It is the policy of the Portfolios to
receive and maintain securities as collateral whose market value, including
accrued interest, will be at least 100% of the dollar amount invested by that
Portfolio in each agreement, and that Portfolio will make payment for such
securities only upon physical delivery or upon evidence of book entry transfer
to the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is market-to-market on a
daily basis to ensure the adequacy of the collateral. If the seller defaults,
and the value of the collateral declines, or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Portfolio may be delayed or limited.
4. The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the period ended March 31, 1996 were as follows:
<TABLE>
<CAPTION>
Common Stocks
Corporate Notes and Bonds US Government Obligations
----------------------------------------------------------------------------
Cost of Proceeds from Cost of Proceeds from
Securities Securities Sold Securities Securities Sold
Purchased Purchased
----------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Emerging Growth Portfolio $5,435,208 $232,051 $9,258,080 $8,849,684
Equity Value Portfolio 5,563,133 171,874 20,979 21,000
Balanced Portfolio 3,676,083 177,879 1,678,113 --
Intermediate Bond Portfolio 1,996,316 -- 4,312,297 1,600,470
</TABLE>
5. Unrealized appreciation (depreciation) at March 31, 1996, based on the cost
of securities for Federal income tax purposes, is as follows:
<TABLE>
<CAPTION>
Net Unrealized
Gross Unrealized Gross Unrealized Appreciation
Appreciation (Depreciation) (Depreciation)
---------------- ---------------- --------------
<S> <C> <C> <C>
Emerging Growth Portfolio $636,264 $(113,018) $523,246
Equity Value Portfolio 412,196 (128,059) 284,137
Balanced Portfolio 281,810 (139,205) 142,605
Intermediate Bond Portfolio 1,968 (97,692) (95,724)
</TABLE>
6. Transactions in shares of beneficial interest for the period ended March 31,
1996 were as follows:
<TABLE>
<CAPTION>
Shares Shares Shares
Sold Reinvested Repurchased Net Increase
----------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
Emerging Growth Portfolio 571,270 264 (115) 571,419
Equity Value Portfolio 566,250 1,343 (107) 567,486
Balanced Portfolio 536,266 2,399 (61) 538,604
Intermediate Bond Portfolio 511,563 5,213 (8) 516,768
Money Market Portfolio 5,017,358 53,346 (624) 5,070,080
</TABLE>
<PAGE> 17
PACIFICA VARIABLE ANNUITY
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD * (UNAUDITED)
<TABLE>
<CAPTION>
EMERGING INTERMEDIATE MONEY
GROWTH EQUITY VALUE BALANCED BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ---------- ----------
PERIOD ENDED MARCH 31, 1996
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 1.000
---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
Net investment income * * 0.01 0.03 0.05 0.10 0.011
Net gain on securities (both realized and unrealized) * * 0.82 0.54 0.28 (0.22) 0.000
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.83 0.57 0.33 (0.12) 0.011
---------- ---------- ---------- ---------- ----------
Less Distributions:
Dividends from net investment income (0.01) (0.03) (0.05) (0.10) (0.011)
Distributions from net realized gains 0.00 0.00 0.00 0.00 0.000
---------- ---------- ---------- ---------- ----------
Total Distributions (0.01) (0.03) (0.05) (0.10) (0.011)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 10.82 $ 10.54 $ 10.28 $ 9.78 $ 1.000
========== ========== ========== ========== ==========
Total Return (not reflecting sales load) 8.25% 5.65% 3.26% -1.50% 0.70%
RATIOS / SUPPLEMENTAL DATA:
NET ASSETS, END OF PERIOD (IN THOUSANDS) $ 6,184 $ 5,979 $ 5,538 $ 5,056 $ 5,070
RATIO OF EXPENSES TO AVERAGE NET ASSETS * * * 1.20% 1.20% 1.20% 1.10% 1.05%
EFFECT OF WAIVERS ON ABOVE RATIO * * * 0.85% 0.84% 0.85% 0.81% 0.78%
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS * * * 0.22% 1.08% 1.95% 4.22% 4.37%
PORTFOLIO TURNOVER RATE 11.70% 7.32% 7.92% 80.77% --
AVERAGE COMMISSION RATE * * * * $ 0.064 $ 0.059 $ 0.060 -- --
</TABLE>
* Fund commenced operation on January 2, 1996.
* * Per share data based upon average monthly shares outstanding.
* * * Annualized.
* * * * For fiscal years beginning on or after September 1, 1995, a
portfolio is required to disclose its average commission rate
per share for security trades on which commissions are charged.
This amount may vary from period to period and portfolio to
portfolio depending on the mix of trades executed in various
markets where trading practices and commission rate structures
may differ.
<PAGE> 18
PACIFICA VARIABLE ANNUITY
BOARD OF TRUSTEES
JOSEPH N. HANKIN* President, Westchester Community College
RICHARD A. WEDEMEYER* Vice President, Performance Advantage, Inc.
JOHN E. HEILMANN* Former Chairman, Distillers Somerset, Inc.
DENNIS W. DRAPER* Associate Professor of Finance, University of
Southern California
JACK D. HENDERSON, ESQ.* Private law practice
* Member of Audit Committee
- --------------------------------------------------------------------------------
OFFICERS
MICHAEL C. PETRYCKI President
STEVEN D. BLECHER Executive Vice President
JOAN V. FIORE Vice President & Secretary
JOHN J. PILEGGI Vice President & Treasurer
DONALD E. BROSTROM Assistant Treasurer
ERIC RUBIN Assistant Secretary
Shares of the Portfolios of Pacifica Variable Trust are not deposits or
obligations of, or guaranteed or endorsed by First Interstate, Wells Fargo, or
any other bank, and are not insured by the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other agency. Mutual fund shares
involve certain risks, including the possible loss of principal.
There can be no assurance that the Money Market Portfolio will be able to
maintain a stable net asset value of $ 1.00 per share.
This report is for the information of contract owners of Pacifica Variable
Annuity. Its use in connection with any offering of the Trust's shares is
authorized only in case of a concurrent or prior delivery of the Trust's current
prospectus.
